Compare the best business bank accounts for ecommerce

If you’ve recently set up an ecommerce business, you may be considering opening a business bank account. Let’s take a closer look at how they work and how to choose the best one.

Compare business bank accounts for ecommerce

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Name	Product	Account fee	Bank transfers	Requires credit check	Accounting integrations	Arranged overdraft	Account management	Key benefits	Business bottom txt	Link
OFFER Mettle by NatWest - Mobile business bank account Account Mettle by NatWest - Mobile business bank account Account Finder Award	OFFER	Free	Free		FreeAgent, QuickBooks, Xero		App	Save £150 a month with FreeAgent accounting software for free.	To get FreeAgent for free, you'll need to make at least one transaction a month from your Mettle account. A saving of £150 a year (based on FreeAgent's lowest tariff). Eligibility and conditions apply.	Go to site View details		loading Fetching your data...
EXCLUSIVE Tide Free Account Tide Free Account	EXCLUSIVE	Free	£0.20 Free if both accounts are with Tide		Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero		Online & app	Free Tide Accounting + VAT Manager until end of May (T&Cs apply).		Go to site View details		loading Fetching your data...
OFFER Monzo Business Lite Account Monzo Business Lite Account	OFFER	Free	Free		N/A		Online & app	Get a free business account with no monthly fees		Go to site View details		loading Fetching your data...
FREE TRIAL HSBC Kinetic Current Account HSBC Kinetic Current Account	FREE TRIAL	£6.50 per month (waived in first 12 months)	Free		N/A		Branch, online, app & phone	No monthly account fee for 12 months, thereafter a monthly charge of £6.50 applies		Go to site View details		loading Fetching your data...
Revolut Business Free Account Revolut Business Free Account		Free	Free		FreeAgent, Xero		Online & app	No annual or monthly fee when you apply using the Finder link		Go to site View details		loading Fetching your data...
CASHBACK ANNA Free Account ANNA Free Account	CASHBACK	Free	Free 2 free UK transfers per month		Sage, Xero		App	Earn 1% cashback for paying with your ANNA card in selected categories.		Go to site View details		loading Fetching your data...
FREE TRIAL The Co-operative Bank Business Current Account The Co-operative Bank Business Current Account	FREE TRIAL	£10 (waived in first 30 months)	Free		QuickBooks, Sage, Xero, Multiple providers	On application (subject to status, eligibility and The Co-operative Bank's Lending policy)	Branch, online, app & phone	Free everyday business banking for 30 months with the original ethical bank, plus access to the free ‘Go Get Paid’ app from BankiFi to help you get paid faster. Sole traders or Single Directors only. Charges apply for cash and cheque transactions. Apply online. T&Cs apply.		Go to site View details		loading Fetching your data...
OFFER Cashplus Business Go Bank Account Cashplus Business Go Bank Account	OFFER	Free	£0.30 Free for first 3 payments sent each month (£0.30 for every transfer thereafter)		Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero	By invitation	Online & app	No annual or monthly fee when you apply using the Finder link		Go to site View details		loading Fetching your data...
OFFER Small Business Account Small Business Account	OFFER	£12.50 per month (waived in first 3 months)	From £0.30		FreeAgent, Sage, Wave, Xero		Online, app & phone	No monthly account fee for the first three months		Go to site View details		loading Fetching your data...
OFFER Countingup Starter Business Account Countingup Starter Business Account	OFFER	£3 per month (waived in first 3 months)	£0.30		N/A		App	No monthly account fee for the first three months		Go to site View details		loading Fetching your data...

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Latest reviews of business accounts for running an ecommerce business

Mettle by NatWest - Mettle by NatWest - Mobile business bank account

Finder rating

★★★★★

Customer rating

★★★★★

Go to site Read review

• Why it’s great
• Pros/cons
• Details

Save £150 a month with FreeAgent accounting software for free.

If you're looking to keep business costs down, the great thing about the business bank account from Mettle is that it's completely free to use. It's also easy to apply for - you can do so via the app in just a matter of minutes. Mettle is part of the NatWest Group and there are lots of great benefits to take advantage of. For example, you can create and send invoices on the go, set up Money Pots so that you can save for things like tax and new equipment, as well as get an overview of your cash flow at any time so you can keep track of your spending and income. What's more, you can also sync the account with accounting software such as FreeAgent, QuickBooks and Xero. Note that you must be a UK-based company and a UK resident to apply for this account.

• Quick and easy application
• Freeze your card if you lose it
• Free, with useful features
• Backed by the Natwest group
• Sleek easy to use app

• Overdrafts are unavailable
• Daily payment limit of £10,000

Account fee	Free
Bank transfers	Free
Accounting integrations	FreeAgent QuickBooks Xero
Requires credit check
Overdraft

Starling Bank - Business Current Account

Finder rating

★★★★★

Customer rating

★★★★★

Read review

• Why it’s great
• Pros/cons
• Details

Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm).

This digital-only bank account from Starling can be applied for with ease via the app. There's no monthly fee for the account but it still offers a whole range of useful benefits for your business. For example, you'll be able to integrate your account with QuickBooks, FreeAgent and Xero, benefit from automated business spending categorisation and receipt capture, and make international payments. Spending on your bank card and withdrawing cash abroad is also free of charge. Accounts can also be customised with add-ons, provided you're happy to pay a monthly fee. This includes the Business Toolkit which helps you create and send invoices, calculate tax, record your VAT and submit your VAT return, a Euro business account for exchanging and holding euros, and a US dollar business account for holding, sending and receiving US dollars.

• Add the new Business Toolkit onto your free Starling account and get the first month free of charge (RRP £7pcm)
• Completely free UK current account opened and ready to use in 20 minutes
• Safe and secure
• Fully licensed by the FCA and PRA
• Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature, competitive and comprehensible overdraft fees
• Decent interest rate paid on current account balances
• Efficient app offering a range of good features such as budgeting tools and saving features
• Has a marketplace offering competitive pensions
• Mortgages and insurance from other growing fintech companies
• Teen account options
• 24/7 customer support (for all types of enquiries)

• Relatively new so does not offer every feature, e.g. mortgages
• No bank branches, all done via the web
• Only available to UK residents

Account fee	Free
Bank transfers	Free
Accounting integrations	FreeAgent QuickBooks Xero
Requires credit check
Overdraft	Up to £50,000 subject to eligibility and application

Cashplus - Cashplus Business Go Bank Account

Finder rating

★★★★★

Go to site Read review

• Why it’s great
• Pros/cons
• Details

No annual or monthly fee when you apply using the Finder link.

If you're looking for a low-cost business account, take a look at what Cashplus has to offer. There are no monthly account fees and no fees for UK purchase transactions either. Signing up for the account can be completed online in a matter of minutes. Through the account, you'll be able to track expenses and block certain transactions, order up to 20 additional cards, download statements for each card in CSV format online, manage cards via a centralised management system, and integrate your account with accounting software. You'll also be able to deposit cash via bank transfer or the Post Office, use your card online and instore or to withdraw cash, pay bills and expenses online and categorise spending on the go via the app. Money held in your account will be protected up to £85,000 by the Financial Services Compensation Scheme.

• Open an account in 5 mins
• "Cashplus iDraft" once eligible
• Currency cards for travel
• Online services in addition to the mobile app

• Charge to have your bank card issued
• Traditional bank still needed for majority of your business finance needs

Account fee	Free
Bank transfers	£0.30 Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
Accounting integrations	Clear Books FreeAgent KashFlow QuickBooks Sage Xero
Requires credit check
Overdraft	By invitation

Airwallex - Multi-Currency Business Account

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• Why it’s great
• Pros/cons
• Details

Earn 0.5% cashback when you exchange currencies during your first 3 months with us.

This bank account enables businesses to collect, hold and send money in multiple currencies. There are no monthly fees and accounts can be opened in a matter of minutes. Users will be able to transfer funds in more than 34 currencies into over 130 countries at competitive exchange rates. What’s more, you’ll be able to create virtual employee and expense cards for your business which will enable you to track spending and set spend limits. You can also use your multi-currency debit card to pay for expenses online or in person in different currencies with no transaction fees, provided you have the right currencies in your account. Further benefits include the option to connect your currency accounts with platforms like eBay, Shopify and PayPal, and the ability to sync your account with Xero to ensure your Xero transaction records are up to date for your accountant or bookkeeper.

• Collect, hold and send money in several currencies
• Competitive foreign exchange rates
• No monthly account fees
• No transaction fees for card payments

• Not covered by the Financial Services Compensation Scheme
• Transfers can only be made to your Airwallex wallet or to a business bank account

Account fee	Free
Bank transfers	Free
Accounting integrations	Xero
Requires credit check
Overdraft

Do you need a business bank account to run an ecommerce business?

You won’t necessarily have to open a business bank account to run an ecommerce business. However, this will depend on whether you’ve set up your business as a limited company or whether you’re currently a sole trader.

If your business is a limited company in the UK and you’ve registered it with Companies House, you will be legally required to open a business bank account as your business is a separate legal entity from you as an individual.

On the other hand, if like many businesses in the UK, you are a sole trader, your business is not legally separate from you and there is no obligation to open a business bank account. However, it can still be worth opening one as you’ll be able to clearly see the divide between your own income and expenditure, and your business.

You should also note that some banks may specify that personal current accounts are used for personal reasons only. They may threaten to close your personal account if they spot a large number of business-related transactions.

Benefits of an online bank account for ecommerce purposes

When comparing business bank accounts for ecommerce purposes, you’ll come across traditional high street bank options that will allow you to carry out some of your transactions in branch, as well as online only accounts.

Choosing a business bank account that can be opened and managed online has a number of benefits. For a start, these accounts are designed to incur fewer overhead costs and those savings are often passed on to the customer. This means online accounts tend to have lower service and maintenance costs, they may pay higher rates of interest and transactions generally clear faster than they do with a high street bank.

Most online banks also offer an app, allowing you to manage your account on the go and get notified when money is paid in or out of your account. Many will also include budgeting tools and integrate with accounting software to help you keep on top of your invoices and tax returns.

If your business also trades abroad, some online accounts will offer low-fee foreign transactions and let you hold money in different currencies.

What should you look out for when choosing a business bank account?

When comparing business bank accounts, you’ll need to keep the following in mind:

• Is there a monthly account fee?
• Are there transaction fees (for example, for transfers in and out, and direct debits)?
• Does the account have an overdraft and, if so, how much will you be charged?
• How can the account be opened and managed?
• Does the account offer additional tools and support, such as budgeting, accounting and invoicing?
• Will you be charged for using your debit card?

Some business bank accounts won’t charge a monthly maintenance fee for the first year or so, but fees will kick in after that. Having fees waived for the first year may be helpful if your business is just starting out.

What you should look for when selling internationally?

If you trade internationally, it’s important to compare business bank accounts to see how much you’ll be charged each time you carry out a foreign transaction. You’ll need to consider what exchange rate you’ll be charged, as well as additional fees for sending or receiving money internationally.

Many digital only accounts will let you carry out a set number of foreign transactions per month either free of charge or for a small fee. Make sure you compare these costs carefully.

Depending on where you sell, you may also need to hold different currencies in your business account. Some digital banks will offer accounts in euros and/or dollars, while others will offer a multi-currency account that will let you transact in several currencies from the one account.

Pros and cons of a business bank account for ecommerce

Bottom line

Opening a business bank account for ecommerce purposes has a number of benefits, but primarily it can make juggling your business expenditure with your own that much easier. This will also be beneficial when you come to do your tax return.

When deciding which business bank account is best for your ecommerce business, you’ll need to consider how you plan to run the account and what you need from it. For example, if your business is a startup, your priority may be to keep costs as low as possible – in which case, you’ll need an account that offers decent transaction limits and a low monthly fee.

Frequently asked questions

• How do I open a business bank account for ecommerce?

  If you choose a traditional high street bank, you can usually open your business account online, in branch or over the phone. If you choose a digital only bank, you will only be able to open the account online or via the app – this is usually a much quicker process. You'll usually be asked to provide ID and proof of address, as well as details about your ecommerce business.

• Can I open a business bank account if I have poor credit?

  If you have poor credit, you may find it harder to open a business bank account and your choices will be more limited. However, some digital only banks won't require a credit check as part of your application, so may be suitable if your credit score is low. Just bear in mind these accounts won't offer an overdraft. You can compare business accounts for bad credit here.

• Is money in a business bank account protected by the Financial Services Compensation Scheme (FSCS)?

  This will depend on the type of bank account you choose. If your money is held with a UK-authorised bank or building society, the first £85,000 per person will be protected under the FSCS.

  However, many digital only providers do not offer FSCS protection. Instead, your money will be protected through safeguarding rules under the Electronic Money Regulations 2011.